The Somerset herald. [volume] (Somerset, Pa.) 1870-1936, 1887-07-20
He says Plan has been Completed for the Reor-
aanizzsion OF the Company The Consent
OF Nearly all the sondhoiders Obtain
ed. and Only Legal Difficulties To
be Overcome

Gu. anu tDlJ Legal DiMGusucs 70
be Overcome.
I Thursday contained some important news
relative TO the revival OF the South Penn
I Railroad, and when the gentleman who re-
ceivei il made its contents public, il created
quite stir aud some excitement among our
/ people The amount Of the telegram, and il
( came from a most reliable sIurce, was that
I the projectors Of the South Penn had decid-
ed 10 resume the construction of the road
and TO push the work 70 completion as rap
idly as possible George f Baer. ESQ. OF
Reading, one OF the three gentlemen who
have the reorganization in charge, arrived in
Somerset saturday He confirmed the re-
port already received and said the road
would unquestionabiy be built and that the
contracts woald in all probability be re-let,
and work on the construction OF the road
bed be resumed this fall. He stated that an
agreement had been drawn np and signed by
all the interested parties, including the VAN
defbilts and TwombIey, and that the only
party in interest whose signature to the
agreement had not yet been obtained was
Mr.. Andrew Carnegie who Is now in Eu-
rope, but il was not thought there would be
any difficulty in obtaining his signature and
even should be refuse 10 sign, ii would make
no material difference The following in
formation concerning the South Penn is
collected from our city exchanges
A Herald reporter called George F. Baer's
attention to an article in yesterdays Phila-
delphia Record protesting to give an account
Of the last movements looking TO the COM
pletion of the South Pennsylvania railroad
Mr. Baer said that he did not feel al liberty
to give details, bat that there was some
foundation tor the general statement that the
stockholders of the South Penn were taking
active measures TO reorganize the company
lie said that Mr.. Z. L. 5tetson, of New York,
and himself had been entrusted by the stock
holders. Al a meeting held in New York last
December, with the work of revising certain
plans snbtnittel by Mr. Gowen For salts
factory reasons the stock holders ,ieetned il
inexpeiient 70 adopt these plans. aid since
then, under The general powers given to
them, MIR, SteIson and himself had sIIc-
cesied in formulating i plan Of reorgAniza-
tiou which two weeks ago was signed by 4
majority Of the stockholders. including the
Messrs. Vanderbilt, Dr. David Hostetter,
Mr. Bagaley, and Others. The absence in
Europe Of several large holders had caused
some delay, but it is believed that all the
parties in interest will sign and accept the
plan.
Within few days however, the Pennsyl-
vania Company has addressed long letter
to the stockholders, whom they claim two
years ago accepted their offer Of purchase,
notifying them not to sign any agreement
or make any disposition Of their interests
whereby the Pennsylvania Company viii
be defeated in obtaining control Of thesouth
Penn. For himself, Mr. Bler said be did
not think this notice would deter anyone
from going forward.
For the past two years the Pennsylvania
Company has. without the expenditure Of
dollar. OF the payment Of one cent To the
stockholders of the South Penn, completely
stifie,i that enterprise This has been very
pleasant for the Pennsylvania Company, but
very hard on the general public and the
people who have expended many millions
in the enterprise.
In view of the decision OF the Supreme
Court against the legality of the purchase
II IS not likely. said Mr. Baer q after the de-
termination of the majority Of the stock
holders to reorganize the Company and save
their money, that the e,liet Of the PenRsyl-
vania Company viii prevent the other stock
holders fr,sn joining in the plan.
What about the plan of reorganization as
set forth in the Record p
| 10 not think il proper for me to dis
close the details OF the plan. The Record ar
ticie does not give H. think it il a good
plan hut a. it n substantially Of my own
creation, il hardly becomes me 10 say even
50 much The organization trustees are Mr.. /
Francis Lin,iley stetsoil, Of New York DIR.
David Hcstefter and Henry Rhipps, Jr:. of
F. B. tiowen, Of Philadelphia,
and George F. Baer, Of Reading. The plan
gives them full and ample power to reorsan-
ize and build the road
How about reaching New York and Phil I
ldelphia from Harrisburg
The South Penn has valid contracts with
the Reading railroad as well as with the Lake |
Shore system. OF course these traffic con
tracts viii be preserved
Has 81 per cent of the assessments been
paid in %
6 Yes. bnt by reason Of the rights OF way
acquired the low cost Of construction and (
ihe valuable traffic contracts. several mil /
lions more must he added To get the actual 1
value Of the South Penn to-day as going /
enterprise mean that to acquire the same
nights and properly and by an equal amount
,f construction, an expenditure of several 4
millions more than the cash expenditure of i
, per cent. actually expended in money in
.he past would be required.
DO nor think ought to disclose the
lelails Yoa can rcssiily see that we are
,ompassed about by powerful enemies, and (
lase since my employment as one Of the
;ounsel OF the South Penn strenuoasiy in
listed that there should be less talk and
more work If the public win wait little
onger, and steadfastly hold up the hands Of
he men who are trying TO uphold the laws
# the State for the protection of the people,
he second and final chapter Of the great
lai viii be closed to their entire satisiac
ion
What do you mean by the second
napier ,"
Well, | think the first chapter was the
organization ofihe Beech Greek =
Do you know anything about Mr. Cow
n coming home to arqle the case in the
Ipreme Court
. do not. The case has been pretty well
igued in the Supreme Court Mr.. Cassidy,
: Attorney General, did his work very
fell - Rr,ssli,ag Heraid II j,.iy is. iss7.
The capitalists interested in the compile
ION ofthe South Penn Railroad have deter
lined TO reopen the case in the Courts with
view TO obtaining a determination of it